Executive Chairman Eric Schmidt is selling Nearly 42 Percent of his Shares in the Company
According to a report from Reuters, Google’s current Executive Chairman Eric Schmidt is about to sell nearly y 42 percent of his shares in the company, giving him potentially US$2.51 billion in cash.
Reuters:[quote] Schmidt, 57, will sell 3.2 million shares of Class A common stock through a stock trading plan, Google said in a filing with the U.S. Securities and Exchange Commission on Friday.
The plan, which Google said would give Schmidt “individual asset diversification and liquidity,” allows Schmidt to spread trades out over a period of one year to reduce the market impact. Shares of Google were down $4.11 at $781.26 in after-hours trading on Friday.[/quote]
There are lots of quotes from the full article indicating that there is no need to panic. Schmidt is just looking for more diversity in his investment going forward.
However, I would like to point out that the same thing was being touted last May when Scott Forstall sold 95 percent of his Apple stock.
Here is a CNET report at the time:[quote] Apple senior vice president of iOS software, Scott Forstall, had an awfully nice payday on Friday.
According to a Securities and Exchange Commission (SEC) filing that has popped up on Apple’s Web site, the executive sold off over 64,000 company shares, netting him more than $38.7 million. The sale wiped out 95 percent of his Apple stock, leaving him only 2,988 shares. But that isn’t so bad: even at today’s $584.40 share price, the holdings are worth over $1.7 million.[/quote]
Then again Google fans could find solace in the fact that 42 percent is no way near the 95 percent that Forstall got rid off back then.